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Gold/Mining/Energy : Oil & Gas Price Economics -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (221)	7/4/2000 5:39:45 PM
From: kormac	Read Replies (1) \| Respond to of 350

Ed, I agree in your assessment that this latest development is bullish for oil. The only thing that will keep prices down IMO is a drop in demand caused by a worldwide recession. If Colin Campbell, Jean Laherrere and the Petroconsultants are right, we are fast approaching the peak of world oil production. The slowdown in non-OPEC oil after the drop to 10 dollars a barrel means that OPEC now exports about 32 percent of all the oil. Hence they are again on the driver's seat, with the difference now that the world demand is huge and rising more than 2% a year. There is very little spare capacity left and each oil producing country needs to start to husband their reserves for future. If the scarcity develops, the tensions will be very high between consumer countries and producers. with my best, Seppo